CIMB Bank Singapore yesterday rolled out a new current account for small and medium-sized enterprises (SMEs) to help them meet operational needs.
The bank said one bonus of the new product is that it does not carry many of the high transaction costs typical of such accounts.
CIMB BusinessGo is a multi-feature current account for businesses with an interest rate of up to 1.88 per cent.
It pays a base interest of 0.78 per cent, which applies to the entire account balance with a minimum monthly average balance of $30,000. A bonus interest of 1.1 per cent can be earned on the first $100,000 when companies meet the single criterion of performing more than $20,000 of outward telegraphic transfers in a month.
Ms Ng Wee Lee, head of commercial banking at CIMB Bank Singapore, told The Straits Times that typical interest rates for most business current accounts in Singapore range between 0 and 0.3 per cent.
Unlike most other current accounts, CIMB BusinessGo also offers fee waivers and rebates on many commonly charged transactions, such as telegraphic transfers, payroll, Giro, cheques and even bank guarantees.
Telegraphic transfers, for instance, cost about $155 for an amount of $100,000, said Ms Ng, noting that firms may incur high transaction fees if they perform many transfers in a month.
CIMB said in a press release that CIMB BusinessGo aims to "assist enterprises in their efforts to further their ambitions while effectively managing their cash flow".
It added that this is especially important in today's subdued economic climate, where businesses are faced with high operating costs.
The bank said this is also in line with the Government's continued efforts to offer near-term support to aid businesses.
Added Ms Ng: "As the economy undergoes deep shifts that will bring about new challenges, businesses increasingly need a banking partner that understands their needs intimately to help them keep costs down and remain competitive.
"CIMB BusinessGo is how CIMB Bank provides true value to enterprises with a current account that offers high interest rates and a suite of product features aimed at addressing transactional costs - a quintessential solution to the operational demands of businesses today."
